Western Ohio Cropland Values and Cash Rents 2017-18

Ohio cropland values and cash rental rates are projected to decrease in 2018. According to the Western Ohio Cropland Values and Cash Rents Survey, bare cropland values in western Ohio are expected to decrease from 1.7 to 3.6 percent in 2018 depending on the region and land class. Cash rents are expected to decline from 1.2 percent to 3.0 percent depending on the region and land class.

Ohio Cropland Values and Cash Rent

Ohio cropland varies significantly in its production capabilities and, consequently, cropland values and cash rents vary widely throughout the state. Generally speaking, western Ohio cropland values and cash rents differ from much of southern and eastern Ohio cropland values and cash rents. The primary factors affecting these values and rates are land productivity and potential crop return, and the variability of those crop returns. Soils and drainage capabilities are the two factors that most influence land productivity, crop return, and variability of those crop returns.

Other factors impacting land values and cash rents are field size and shape, population density, ease of access, market access, local market prices, potential for wildlife damage, field perimeter characteristics, and competition for rented cropland in a region. This fact sheet summarizes data collected for western Ohio cropland values and cash rents.

2018 Study Results

The Western Ohio Cropland Values and Cash Rents study was conducted from February through April in 2018. The opinion-based study surveyed professionals with a knowledge of Ohio’s cropland values and rental rates. Professionals surveyed were farm managers, rural appraisers, agricultural lenders, OSU Extension educators, farmers, landowners, and Farm Service Agency personnel.

The study results are based on 108 surveys returned, analyzed, and summarized. Respondents were asked to group their estimates based on three land quality classes: average, top, and poor. Within each land-quality class, respondents were asked to estimate average corn and soybean yields for a five-year period based on typical farming practices. Survey respondents were also asked to estimate current bare cropland values and cash rents negotiated in the current or recent year for each land-quality class. Survey results are summarized below for western Ohio with regional summaries (subsets of western Ohio) for northwest Ohio and southwest Ohio.

The measures shown in the following tables are the summary of the survey responses. The measures shown are the average (or mean), standard deviation indicating the variability of the data from the average measure, and range. Range identified in the tables consists of two numbers: The first is the average plus the standard deviation and the second is the average minus the standard deviation.

Why Range is Important

Range represents the spread of land values and cash rents. When farmers and landowners consider a parcel, it’s helpful to compare not only the average, but also the range measure. The range in these tables represents two-thirds of the responses in the survey, which provides reliable data. Also, farmers and landowners need to realize land in a given region does not fall neatly into thirds of each land-quality class (average, top and poor). Typically, only a small percentage of acreage in a given county or region will fall into the top land category, which is usually large tracts of land with highly productive soils. Average land will typically be the majority of land in a given region or county while poor land will tend to have lower productivity soils, steeper slopes, poor drainage, smaller tracts, or a combination of these characteristics.

Factors Affecting Cash Rental Rates

Ultimately, supply and demand of cropland for rent determines the cash rental rate for each parcel. The expected return from producing crops on a farm parcel and the variability of that return are the primary drivers in determining the rental rates. Many of the following factors contribute to the expected crop return and the variability of that return. Secondary factors may exist and could affect potential rental rates. These secondary factors are also listed.

Expected Crop Return

Rent will vary based on expected crop return. The higher the expected return, the higher the rent will tend to be.

Variability of Crop Return

Land that exhibits highly variable returns may have rents discounted for this factor. For example, land that is poorly drained may exhibit variability of returns due to late plantings during wet springs.

Drainage/Irrigation Capabilities: Better surface and sub-surface drainage of a farm often results in better yields and higher potential cash rent. Likewise, irrigation equipment tied to the land will allow for higher yields, profits, and rents.

Size of Farm/Fields: Large farms/fields typically command higher average cash rent per acre due to the efficiencies gained by operators.

Shape of Fields: Square fields with fewer “point rows” will generally translate into higher cash rents as operators gain efficiencies from farming fields that are square.

Previous Tillage Systems or Crops: Previous crops and tillage systems that allow for an easy transition for new operators may enhance the cash rent value.

Field Border Characteristics: Fields surrounded by tree-lined fencerows, woodlots or other borders affecting crop growth at the field edge will negatively impact yield and therefore should be considered in rental negotiations.

Wildlife Damage Potential: Fields adjacent to significant wildlife cover including woodlots, tree-lined fencerows, creeks, streams, and such may limit production potential to border rows and should be considered in rental negotiations.

Secondary Factors Affecting Rental Rates:

Buildings and Grain Storage Availability: Access to machinery and grain storage may enhance the value of the cropland rental rate.

Location of Farm (Including Road Access): Proximity to prospective operators may determine how much operators are willing to bid for cash rents. Good road access will generally enhance cash rent amounts.

USDA Farm Program Measurables: Farms that participate in the USDA Farm Program and have higher “program yields” may command higher cash rents than non-program farms.

Services Provided by Operator: Operators that provide services such as clearing fence rows, snow removal, and other services may be valued by the landowner. This may even be a partial substitute for cash rent compensation.

Conditions of Lease: Conditions placed on the lease by the landowner may result in fewer prospective operators and a lower average cash rent.

Payment Dates: Leases that require part or all of the rent to be paid early in the year (up-front) may result in lower rental rates due to higher borrowing or opportunity costs for the operator.

Reputation of Landowner or Operator: Reputations of the parties may play a part in the cash rental negotiations. A landowner with a reputation of being difficult to work with may see cash rents negatively affected by this reputation. Farmers with a similar negative reputation may have to pay higher rents.

Special Contracts: Farms with special contract commitments may restrict the operator from changing crops based on market conditions. This may negatively impact cash rents. There may also be contracts that positively affect cash rents such as high value crop contracts or contracts for receiving livestock manure.

The following sections of the fact sheet detail the 2018 survey results divided into western, northwest, and southwest Ohio. The western Ohio summarized data is simply the entire data set which includes both the northwest and southwest regions. Tables 1 through 3 also detail projected changes for long-term land value and cash rents, which will be explained later in the fact sheet in the “Additional Survey Results” section.

Western Ohio Results

Survey results from Western Ohio are summarized in Table 1. See Figure 1 for counties included in this region. Additional results, including year-over-year percentage change, rent per bushel of corn, and rent as a percentage of land value, are summarized in Tables 4 and 5.

Average Cropland

Survey results for average producing cropland showed an average yield to be 177.0 bushels of corn per acre. Results showed that the value of average cropland in western Ohio was $7,231 per acre in 2017. According to survey data, average producing cropland is expected to be valued at $7,034 per acre in 2018. This is a projected decrease of 2.7 percent.

Average cropland rented for an average of $190 per acre in 2017 according to survey results. Average cropland is expected to rent for $187 per acre in 2018 which amounts to a 1.6 percent decrease in cash rent year-over-year. This 2018 rental rate projection of $187 per acre equates to a cash rent of $1.06 per bushel of corn produced. Rents in the average cropland category are expected to equal 2.7 percent of land value in 2018.

Top Cropland

Survey results indicated top performing cropland in western Ohio averaged 210.6 bushels of corn produced per acre and the average value of top cropland in 2017 was $8,886 per acre. According to this survey, top cropland in western Ohio is expected to be valued at $8,663 per acre in 2018. This is a projected decrease of 2.5 percent.

Top cropland in western Ohio rented for an average of $240 per acre in 2017 according to survey results. Top cropland is expected to rent for an average of $235 per acre in 2018 (a decrease of 2.2 percent) which equates to a cash rent of $1.12 per bushel of corn produced. Rents in the top cropland category are expected to equal 2.7 percent of land value in 2018.

Poor Cropland

The survey summary showed the average yield for poor performing cropland to be 145.2 bushels of corn per acre, with the average value of poor cropland as $5,693 per acre in 2017. According to survey data, this poor producing cropland is expected to be valued at $5,501 per acre in 2018. This is a decrease of 3.4 percent.

Poor cropland rented for an average of $148 per acre in 2017 according to survey results. Cash rent for poor cropland is expected to average $145 per acre in 2018 which amounts to a 1.8 percent decrease in cash rent year-over-year. This 2018 rent projection of $145 per acre equates to a cash rent of $1.00 per bushel of corn produced in 2018. Rents in the poor cropland category are expected to equal 2.6 percent of land value in 2018.

Table 1: Ohio Cropland Values and Cash Rents—Western Ohio Results

Land Class

Average

Standard Deviation

Range*

Average

Avg Corn Yield (bu/a)

177.0

16.0

193.0

161.1

Avg Soybean Yield (bu/a)

52.7

5.8

58.5

47.0

Market Value per Acre

2017

$7,231

$1,053

$8,284

$6,177

2018

$7,034

$1,083

$8,117

$5,951

Rent per Acre

2017

$190

$31

$221

$159

2018

$187

$32

$219

$155

Top

Avg Corn Yield (bu/a)

210.6

18.9

229.6

191.7

Avg Soybean Yield (bu/a)

64.9

7.2

72.0

57.7

Market Value per Acre

2017

$8,886

$1,412

$10,298

$7,474

2018

$8,663

$1,411

$10,074

$7,252

Rent per Acre

2017

$240

$40

$280

$200

2018

$235

$39

$273

$196

Poor

Avg Corn Yield (bu/a)

145.2

20.2

165.4

125.1

Avg Soybean Yield (bu/a)

40.5

7.8

48.3

32.7

Market Value per Acre

2017

$5,693

$1,113

$6,806

$4,580

2018

$5,501

$1,158

$6,660

$4,343

Rent per Acre

2017

$148

$31

$178

$117

2018

$145

$32

$177

$113

Transition Land

2017

$14,500

$9,366

$23,866

$5,134

2018

$14,846

$9,487

$24,333

$5,360

Five Year Projected Percent Change in Cropland Value

-1.66%

8.49%

6.83%

-10.15%

Five Year Projected Percent Change in Cash Rent

-2.37%

7.99%

5.61%

-10.36%

Mortgage Interest Rate—20 Year Fixed—Projected 2018

5.27%

0.76%

6.03%

4.50%

Operating Loan Rate—Projected 2018

5.34%

0.63%

5.97%

4.70%

Pasture Land Value—Projected 2018—Improved, Non-Rotation

$4,382

$1,345

$5,727

$3,038

Pasture Cash Rent—Projected 2018—Improved, Non-Rotation

$83

$49

$132

$33

* Range—One standard deviation above and below the average (mean). Approximately two-thirds of the responses fall within this range.

Northwest Ohio Results

Survey results from northwest Ohio are summarized in Table 2. See Figure 2 for counties included in this region. Additional results, including year-over-year percentage change, rent per bushel of corn, and rent as a percentage of land value, are summarized in Tables 4 and 5.

Average Cropland

Yields for average producing cropland averaged 172.3 bushels of corn per acre or 51.2 bushels of soybeans per acre. Results showed the value of average cropland in northwest Ohio was $6,922 per acre in 2017. According to survey data, this average producing cropland is expected to be valued at $6,691 per acre in 2018. This is a projected decrease of 3.3 percent.

Average cropland rented for an average of $178 per acre in 2017 according to survey results and is expected to rent for $175 per acre in 2018, which is a year-over-year decrease of 1.8 percent. The 2018 rental rate of $175 per acre equaled $1.02 per bushel of corn produced. Rents in the average cropland category are expected to equal 2.6 percent of land value in 2018.

Top Cropland

Survey results indicated top performing cropland in northwest Ohio averaged 208.3 bushels of corn per acre or 64.0 bushels of soybeans per acre. Results also showed the average value of top cropland was $8,710 per acre in 2017. According to this survey, top producing cropland in northwest Ohio is expected to be valued at $8,460 in 2018. This is a projected decrease of 2.9 percent.

Top cropland in northwest Ohio rented for an average of $227 per acre in 2017 and is expected to rent for $223 per acre in 2018 (a decrease of 1.8 percent) according to survey results, which equals $1.07 per bushel of corn produced. Rents in the top cropland category are expected to equal 2.6 percent of land value.

Poor Cropland

The survey summary showed the average yield for poor performing cropland in northwestern Ohio equaled 140.3 bushels of corn per acre or 37.9 bushels of soybeans per acre. Results also showed the average value of poor cropland was $5,365 per acre in 2017 and is expected to average $5,173 per acre in 2018. This is a projected decrease of 3.6 percent.

Poor cropland rented for an average of $137 per acre in 2017 and is expected to average $134 per acre in 2018 according to survey results (a 2.2 percent decrease) which equals $0.96 per bushel of corn produced. Rents in the poor cropland category are expected to equal 2.6 percent of land value in 2018.

The northwest region for the purposes of this survey includes: Williams, Fulton, Lucas, Ottawa, Defiance, Henry, Wood, Sandusky, Paulding, Putnam, Hancock, Seneca, Van Wert, Allen, Hardin, Wyandot, Crawford, Marion and Morrow counties and parts of Richland, Huron, and Erie counties, as shown in Figure 2. Counties bordering this region to the south will also contain land parcels with cropland value and rental rate characteristics similar to northwest Ohio data.

Table 2: Ohio Cropland Values and Cash Rents—Northwest Ohio Results

Land Class

Average

Standard Deviation

Range*

Average

Avg Corn Yield (bu/a)

172.3

12.5

184.8

159.7

Avg Soybean Yield (bu/a)

51.2

4.4

55.6

46.8

Market Value per Acre

2017

$6,922

$887

$7,809

$6,035

2018

$6,691

$923

$7,614

$5,768

Rent per Acre

2017

$178

$23

$201

$155

2018

$175

$23

$199

$152

Top

Avg Corn Yield (bu/a)

208.3

19.4

227.7

188.9

Avg Soybean Yield (bu/a)

64.0

7.6

71.6

56.4

Market Value per Acre

2017

$8,710

$1,303

$10,013

$7,406

2018

$8,460

$1,344

$9,805

$7,116

Rent per Acre

2017

$227

$33

$260

$195

2018

$223

$33

$256

$191

Poor

Avg Corn Yield (bu/a)

140.3

18.3

158.6

121.9

Avg Soybean Yield (bu/a)

37.9

6.1

44.0

31.8

Market Value per Acre

2017

$5,365

$986

$6,351

$4,379

2018

$5,173

$1,043

$6,216

$4,130

Rent per Acre

2017

$137

$26

$163

$111

2018

$134

$27

$161

$107

Transition Land

2017

$14,676

$8,417

$23,093

$6,260

2018

$15,088

$8,668

$23,756

$6,420

Five Year Projected Percent Change in Cropland Value

-1.26%

7.54%

6.28%

-8.81%

Five Year Projected Percent Change in Cash Rent

-1.31%

6.97%

5.66%

-8.28%

Mortgage Interest Rate—20 Year Fixed—Projected 2018

5.24%

0.88%

6.13%

4.36%

Operating Loan Rate—Projected 2018

5.35%

0.55%

5.91%

4.80%

Pasture Land Value—Projected 2018—Improved, Non-Rotation

$4,350

$1,711

$6,061

$2,639

Pasture Cash Rent—Projected 2018—Improved, Non-Rotation

$88

$50

$138

$38

* Range—One standard deviation above and below the average (mean). Approximately two-thirds of the responses fall within this range.

Southwest Ohio Results

Survey results from southwest Ohio are summarized in Table 3. See Figure 3 for counties included in this region. Additional results, including year-over-year percentage change, rent per bushel of corn, and rent as a percent of land value, are summarized in Tables 4 and 5.

Figure 3: Southwest Ohio

Average Cropland

Yields for average cropland were 185.0 bushels of corn per acre or 55.3 bushels per acre of soybeans according to the survey data. Results showed the value of average cropland in southwest Ohio was $7,839 per acre in 2017. According to survey data, average producing cropland is expected to be valued at $7,709 per acre in 2018. This is a projected decrease of 1.7 percent.

Average cropland rented for an average of $213 per acre in 2017 and is expected to rent for $210 per acre in 2018 according to survey results (a 1.4 percent decrease) which equals $1.14 per bushel of corn produced. Rents in the average cropland category are expected to equal 2.7 percent of land value in 2018.

Top Cropland

Survey results indicated top performing cropland in southwest Ohio averaged 214.6 bushels of corn per acre or 66.3 bushels of soybeans per acre. Results also showed that the average value of top cropland was $9,208 per acre in 2017. According to this survey, top producing cropland in southwest Ohio is expected to be valued on average at $9,030 per acre in 2018. This is a projected decrease of 1.9 percent.

Top cropland in southwest Ohio rented for an average of $263 per acre in 2017 and is expected to rent for $255 per acre in 2018 according to survey results which is a year-over-year decrease of 3.0 percent. The 2018 rental rate of $255 per acre equaled $1.19 per bushel of corn produced. Rents in the top cropland category are expected to equal 2.8 percent of land value in 2018.

Poor Cropland

The survey summary showed the average yield for poor cropland in southwestern Ohio was 153.7 bushels of corn per acre or 44.8 bushels of soybeans per acre. Results also showed that the average value of poor cropland was $6,298 per acre in 2017. According to survey data, poor producing cropland is expected to be valued at $6,106 per acre in 2018. This is a decrease of 3.1 percent.

Poor cropland rented for an average of $168 per acre in 2017 and is expected to average $166 per acre in 2018 according to survey results (a 1.2 percent decrease) which equals $1.08 per bushel of corn produced. Rents in the poor cropland category are expected to equal 2.7 percent of land value in 2018.

The southwest region for the purposes of this survey includes: Mercer, Auglaize, Shelby, Logan, Union, Delaware, Darke, Miami, Champaign, Clark, Madison, Franklin, Preble, Montgomery, Greene, Clinton, Fayette and Pickaway counties and parts of Butler, Warren, Brown, Highland, and Ross counties as shown in Figure 3. Counties bordering this region to the north will also contain land parcels with cropland value and rental rate characteristics similar to southwest Ohio data.

Table 3: Ohio Cropland Values and Cash Rents - Southwest Ohio Results

Land Class

Average

Standard Deviation

Range*

Average

Avg Corn Yield (bu/a)

185.0

18.0

203.0

167.0

Avg Soybean Yield (bu/a)

55.3

6.8

62.2

48.5

Market Value per Acre

2017

$7,839

$1,102

$8,941

$6,738

2018

$7,709

$1,068

$8,777

$6,642

Rent per Acre

2017

$213

$33

$246

$179

2018

$210

$33

$243

$176

Top

Avg Corn Yield (bu/a)

214.6

17.7

232.3

196.8

Avg Soybean Yield (bu/a)

66.3

6.3

72.6

60.0

Market Value per Acre

2017

$9,208

$1,561

$10,768

$7,647

2018

$9,030

$1,475

$10,505

$7,555

Rent per Acre

2017

$263

$41

$305

$222

2018

$255

$41

$296

$214

Poor

Avg Corn Yield (bu/a)

153.7

20.6

174.3

133.0

Avg Soybean Yield (bu/a)

44.8

8.5

53.3

36.3

Market Value per Acre

2017

$6,298

$1,092

$7,390

$5,206

2018

$6,106

$1,130

$7,236

$4,976

Rent per Acre

2017

$168

$28

$196

$140

2018

$166

$29

$195

$137

Transition Land

2017

$14,167

$11,500

$25,667

$2,667

2018

$14,389

$11,429

$25,817

$2,960

Five Year Projected Percent Change in Cropland Value

-2.48%

10.27%

7.79%

-12.76%

Five Year Projected Percent Change in Cash Rent

-4.41%

9.42%

5.01%

-13.83%

Mortgage Interest Rate—20 Year Fixed—Projected 2018

5.30%

0.54%

5.84%

4.75%

Operating Loan Rate—Projected 2018

5.31%

0.76%

6.06%

4.55%

Pasture Land Value—Projected 2018—Improved, Non-Rotation

$4,408

$1,018

$5,426

$3,390

Pasture Cash Rent—Projected 2018—Improved, Non-Rotation

$78

$50

$127

$28

* Range—One standard deviation above and below the average (mean). Approximately two-thirds of the responses fall within this range.

Table 4. Average estimated Ohio land value per acre (tillable, bare land), per bushel corn and soybean yields, by geographical area and land class. Ohio Cropland Values and Cash Rents Survey 2017-18

Transition Land

For the entire survey area (represented as “Western Ohio” in Table 1) survey respondents estimated the average value of “transition land,” or land being held for sale for residential, commercial or industrial uses, to be $14,500 in 2017 and is expected to be $14,846 in 2018. It should be noted that there is a very wide range in this survey data.

Projected Estimates of Land Values and Cash Rents

Survey respondents were asked to give their best estimates for long-term land value and cash rent change. The average estimate of cropland value change in the next five years for western Ohio (Table 1) is a decrease of 1.66 percent (for the entire five-year period). Responses for the five-year cropland value change ranged from an increase of 20 percent to a decrease of 30 percent.

The average estimate of cash rent change in the next five years is a decrease of 2.37 percent. The cash rent change also had a large range, with responses ranging from an increase of 15 percent to a decrease of 30 percent. These estimates are summarized in Table 1 for the entire survey area and in Tables 2 and 3 for the survey sub-regions.

Interest Rates

Survey respondents were asked to estimate interest rates for 2018 for two borrowing terms: 20 year fixed-rate mortgage and operating loan. The average estimate, according to survey respondents, of 20 year fixed-rate mortgage borrowing is 5.27 percent for 2018. According to the same respondents, the average estimate of operating loan interest rates is 5.34 percent for 2018.

Pasture Land Value and Rental Rates

According to the survey, pasture cash rents are projected to average $83 per acre in western Ohio in 2018, while the average value of pasture land is expected to average $4,382 per acre.

The summary of these responses is presented in Tables 1 through 3 and includes:

Transition land values

Five-year projected percent change in cropland value

Five-year projected percent change in cash rent

Mortgage interest rate—20 year fixed—projected 2018

Operating loan rate—projected 2018

Pasture cash rent—projected 2018, improved, non-rotation

Pasture land value—projected 2018, improved, non-rotation.

Additional Resources

This study adds to existing research on Ohio farmland values and cash rents that can assist producers and landowners with purchase and rental decisions. Existing research is available by searching at ohioline.osu.edu:

Western Ohio Cropland Values and Cash Rents 2016-17

Western Ohio Cropland Values and Cash Rents 2015-16

Western Ohio Cropland Values and Cash Rents 2014-15

Western Ohio Cropland Values and Cash Rents 2013-14

Western Ohio Cropland Values and Cash Rents 2012-13

Western Ohio Cropland Values and Cash Rents 2011-12

Western Ohio Cropland Values and Cash Rents 2010-11

Western Ohio Cropland Values and Cash Rents 2009-10

Search the Ohio State University Department of Agricultural, Environmental, and Developmental Economics at aede.osu.edu for:

Ohio Cropland Values and Cash Rents 2005-06

Ohio Farm Real Estate Markets (2003)

Also, check with your local OSU Extension Office for local land value/rental survey summaries. For additional information on farmland lease issues see the Farm Office website at farmoffice.osu.edu.

To print a fact sheet, use the "Print" command in your browser. You may then either print the fact sheet or save it as a PDF. Best printed in Google Chrome.

Social Media

Locate An Office

We connect with people in all stages of life, from young children to older adults. We work with families and children, farmers and businessowners, community leaders and elected officials to build better lives, better businesses and better communities to make Ohio great.

CFAES provides research and related educational programs to clientele on a nondiscriminatory basis. For more information, visit cfaesdiversity.osu.edu. For an accessible format of this publication, visit cfaes.osu.edu/accessibility.